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WIP & Variance both should be posted in same production order

Dear All

Can we post Variance and WIP on open production order in same period ? We are following MTO scenario where orders are usually open for more than 1 period. Business requirement is :

1. If order is open, we should be able to post variance to extent of GR done. We are able to achieve this using settlement type PP2 (Periodic).

2. However in this case, for open orders system is not posting WIP. In absence of WIP, there is a net impact on P&L and B/S. How can we post WIP & Variance for open order in same period ?

Regards

Kapil

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3 Answers

  • Posted on Feb 04, 2019 at 09:48 AM

    Dear KAPIL MEHTA

    In case of Open order system calculates WIP and for TECO order system calculates variance.both transactions are executed at the time of order settlement. However if your requirement is to calculate the WIP and variance for the same month then you should check Product cost collector.

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  • Posted on Feb 05, 2019 at 05:58 AM

    Thanks Muhammad.

    If we use production order, can we calculate WIP & Variance both in same month ? We are currently using production order and want to understand how WIP & Variance both can be achieved in same month.

    Regards

    Kapil

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  • Posted on Feb 06, 2019 at 04:52 AM

    Dear KAPIL MEHTA

    Please check product cost collector. For repetitive manufacturing it is mandatory but you can also use product cost collector in MTO processes.

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